Avantis U.S Small Cap Equity ETF

Avantis U.S Small Cap Equity ETF (AVSC) is an actively managed fund from American Century Investments. As of May 31, 2026, it held 1,521 U.S. small-company stocks, and it is measured against the Russell 2000 Index without trying to track it. It leans toward cheaper, more profitable small companies. Its 0.25% expense ratio is higher than index-based small-cap funds such as SPDR Portfolio S&P 600 Small Cap ETF (SPSM), which charges 0.03%.

• Over the year to Oct 27, 2026, AVSC returned +22.7%, 2nd of 9 among similar funds.
• Its worst full calendar year was 2024 (+7.8%); its best was 2023 (+19.7%).
• The deepest fall in its price history was 28.4% (Nov 25, 2024 to Apr 8, 2025), recovered by Oct 24, 2025.

As of Aug 31, 2026, the fund held 1,542 securities; the ten largest made up 3.24% of assets.

• Over the three months to Aug 31, 2026, investors added a net $166.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +6.83%, -1.21%, +0.39%.

AVSC is actively managed, so it does not try to copy an index. Its managers at American Century Investments compare it with the Russell 2000 Index, a common measure of U.S. small companies. In normal markets, at least 80% of assets go into U.S. small-cap stocks. The fund counts a company as small if it is outside the 1,000 largest U.S. firms, in the bottom 10% of U.S. market value, or in the Russell 2000. As of September 30, 2025, the largest qualifying company was worth about $25.2 billion.

Within that group, the managers favor smaller, cheaper and more profitable companies. "Value" mainly means a high adjusted book-to-price ratio, which is a low share price compared with the company's accounting net worth. "Profitability" mainly means cash from operations compared with book value. Each stock starts at its market-value weight, then gets weighted up or down. A stock may be sold once it no longer fits. As of May 31, 2026, the 10 largest positions made up just 4.06% of the fund, led by MYR Group at 0.57%.

Trading is light: portfolio turnover was 5% in the latest prospectus. The fund may lend out its securities. It may also handle creations and redemptions in cash. These are the trades large firms use to add or remove ETF shares. Handling them in cash can make the fund less tax-efficient than ETFs that exchange stocks instead. AVSC uses no leverage or options.

• AVSC charges 0.25% a year, versus an average of 0.15% for the similar funds below (8th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $26 in the first year and $319 over 10 years (assuming a 5% annual return).

AVSC holds small, value-leaning U.S. companies that swing more than the broad market, so it fits better beside a core holding than in place of one.

AVSC could add a slice of smaller, cheaper U.S. companies that large-company funds barely own. Its record is short. It launched in January 2022, years after the 2008 crisis and the 2020 crash and just after the 2022 bear market began, so it has no full record through any of them. Its deepest drop was 28.4%, from November 25, 2024 to April 8, 2025. It got back to its old high by October 24, 2025, about 6.5 months after the low. Anyone who had to sell in that stretch would have locked in losses. Based on price, it lost 12.2% from launch through the end of 2022. Its weakest full calendar year, 2024, still gained 7.76%.

Income is small: the yield was 1% as of October 27, 2026, paid quarterly. In the SEC's standard $10,000 example, costs come to $26 after one year and $319 after 10 years. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.